What will be the covariate risk if you put 19% into stocks

Assignment Help Financial Accounting
Reference no: EM133326589

Case: You plan to put your money into three types of assets: stocks, bonds, and a cash money market account. Their expected returns and risks are given in the following table.


Return
Covariate Risk
  (percent) stocks bonds cash
Stocks 8 3 -1 0
Bonds 5 -1 1 0
Cash 1 0 0 0

Question: What will be the covariate risk if you put 19% into stocks, 6% into bonds, and the rest into the cash money market account? Give your answer in percent rounded to a single decimal (e.g., for 3.56% write 3.6).

Reference no: EM133326589

Questions Cloud

Crime analysts are tasked with explaining crime programs : Crime analysts are tasked with explaining crime programs. Describe how you would prepare to start your research. Read the following article "Planning Research"
Compute depreciation expense for the second year : ACCT 101 Metropolitan Community College, Blue River Compute depreciation expense for the last three months of the first year.
Watch the video-religion for breakfast : Religion for Breakfast YouTube: Using the link below, choose any available Religion for Breakfast YouTube video.
What is pipeline inventory of cleaning vinegar : What is the pipeline inventory (in liters) of cleaning vinegar under this policy? What is the safety stock (in liters) of cleaning vinegar under this policy?
What will be the covariate risk if you put 19% into stocks : COMM 1503 Dalhousie University What will be the covariate risk if you put 19% into stocks, 6% into bonds, and the rest into the cash money market account
What evidence could be gathered in support of this claim : "Coco-Cola and Pepsi-Cola, the two leaders in the beverage industry, are intense competitors and vigorous rivals". Evaluate this claim. How would we know
Should stick pretty close to the minimum required : should stick pretty close to the minimum required. Remember there should be an introduction, a body and then a summary/conclusion. this is for personal finance
Short sea shipping - trans-european transport network policy : Discuss the link between Short sea shipping and Trans-European Transport Network policy.
How much do you think ferrari is worth in euros : FINANCE 123 Simon Fraser University How much do you think Ferrari is worth in euros? Justify your recommendation based on a current market multiples valuation

Reviews

Write a Review

Financial Accounting Questions & Answers

  What exchange ratio between the two stocks

What exchange ratio between the two stocks would make the value of a stock offer equivalent to the $1 billion cash offer? (Show your calculations)

  Income tax expense has not yet been determined

Duke Company’s records show the following account balances at December 31, 2016: Sales $ 15,600,000 Cost of goods sold 9,300,000 General and administrative expenses 1,030,000 Selling expenses 530,000 Interest expense 730,000 Income tax expense has no..

  Prepare accrual basis journal entries for each transaction

Rowland & Sons Air Transport Service, Inc. has been in operation for three years. The following transactions occurred in February: Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "N..

  Operating expenses

If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,000 per month), and rent ($6,500 per month).

  How do think fasb feels about timing manipulations

How do think FASB feels about timing manipulations for the purpose of hitting projection goals? How many different ways you can think of to shift profits

  After-tax returns will be generated from the project

The Management of Ink’s Inc. is evaluating the following investment opportunity which will cost the firm $81,383.53 if undertaken. In addition, it is projected that the following after-tax returns will be generated from the project. What will the NPV..

  Sustainable income and quality of earnings

Sustainable Income and Quality of Earnings. Horizontal Analysis and Vertical Analysis. Ratio Analysis

  Compute solars total taxable income and federal income tax

Solar Corporation reported taxable income of $400,000 from operations for 20X3. The company paid federal income taxes of $136,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, tom soy. Compu..

  What is the real inflation-adjusted rate of return of nancy

The rate of inflation of college costs is 3.83 percent. What is the real inflation-adjusted rate of return of Nancy's investment in college funds?

  Propose at least one strategy to quantify the optimal number

Assume you are the head of data, Propose at least one strategy to quantify the optimal number of employees needed to improve the operations.

  What is filer capital structure weight of debt on book value

The common stock of Tutors Anonymous has a share price of $53, What is Filer's capital structure weight of debt on a book value basis?

  Find the break-even prices in units and dollars

With the current budgeting sales mix intact, Product 1 will have a break-even in units of 108,000 and a break-even in price of $1,296,000.  Product 2 will have a break-even in units of 88,000 and a break-even in price of $1,584,000.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd